Amreli Steels Plans Rs1B Share Issuance

Amreli Steels Limited has revealed plans for a direct issuance of up to 40 million ordinary shares at Rs25 per share, including a Rs15 premium, totaling Rs1 billion.

In a filing with the local bourse on Monday, the company disclosed that its Board of Directors approved the initiative during a meeting on October 3, 2025, to bolster working capital and support ongoing credit restructuring.

The direct issuance, distinct from a rights issue, will be fully subscribed by Mr. Shayan Akberali, an existing sponsor holding 17.09% equity. The new shares, issued for cash consideration, will rank pari passu with existing ordinary shares.

This issuance constitutes approximately 12.47% of Amreli Steels’ current paid-up capital of 297,011,927 shares and about 11.87% of the post-issuance capital. The decision aligns with guidance from the Securities and Exchange Commission of Pakistan (SECP), which barred a rights issue due to the restructuring process and a related report from the State Bank of Pakistan’s Credit Information Bureau.

The company stated that the proceeds will address working capital needs, ensure capacity utilization, and maintain operational stability, safeguarding the interests of all stakeholders, including minority shareholders.

Amreli Steels noted that the average market price of its shares over the three months prior to the Board’s decision was Rs23.48, with the latest price at Rs24.88 per share. The latest audited accounts report a breakup value of Rs35.18 per share for the year ended June 30, 2025.

The direct issuance awaits corporate and regulatory approvals, including shareholders’ consent and SECP authorization under Section 83(1)(h) of the Companies Act, 2017, and Regulation 5 of the Companies (Further Issue of Shares) Regulations, 2020.

Amreli Steels emphasized that this move aims to unlock value, foster long-term growth, and fulfill financial commitments to banks and financial institutions.